The UK Gambling Commission wants to be able to fine gambling companies that violate advertising rules as part of a series of initiatives designed to protect consumers.
The commission argues that the threat of fines would force companies to act responsibly and raise advertising standards across the industry. The commission is also proposing a ban on email and text spam marketing by gambling companies sent without the consumer’s consent.
The proposal would require all gambling operators to follow advertising standards set by the Advertising Standards Agency. Current codes say only that companies “should” meet the standards, not that they are required to.
The commission has opened a public comment phase on its consumer protection proposals. The public can comment on the proposed changes to April 22.
Other proposals would change some license conditions and codes of practice as part of a program to ensure consumers are being treated in a fair and open manner by operators. The proposals include ensuring operators comply with consumer protection rules and improvements to complaint handling. Operators would have an eight-week time limit to handle complaints or the complaint will be referred to an Alternative Dispute Resolution provider.
“We are proposing these changes because of the risk of consumer harm, concern about lack of compliance with consumer protection legislation, declining public trust in gambling and concerns about advertising,” said Sarah Gardner, Commission Executive Director in a press statement. “We’re very keen to hear the views of all those with an interest in the gambling industry.”
Gambling advertising has been part of an increased focus on the industry in the UK, including the predominance of advertising firms sponsoring UK soccer clubs. The country has also seen a push by the media and advocacy groups to protect minors from gambling ads.
Currently, advertising breaches in the UK are reviewed by the Advertising Standards Agency, which can reprimand companies but not impose fines.
The commission has also acknowledged a report published by Citizens Advice on the causes and impacts of problem gambling.
The report stated that up to 4.3 million family members, friends and work colleagues of an estimated 430,000 problem gamblers in Great Britain often suffer issues such as problem debt and the breakdown of relationships. The report, submitted to the UK government’s Department for Digital, Culture, Media and Sport, stated that only 8,800 problem gamblers in the UK received help last year. The report also called for a ban on using credit cards to deposit at gambling sites.
“Citizens Advice provides a vital gateway to vulnerable consumers, particularly those that are already seeking support for their issues, including problematic gambling,” said Tim Miller, Executive Director at the commission. “We welcome this report which puts a focused lens on those that are at the extreme end of gambling-related harm, and provides a strong start in us being able to understand the impact problem gambling can have beyond the individual gambler themselves; on friends, family, work colleagues and communities.
“This report will also help us understand the costs associated with its impact on public health services, on families and communities, on employment and debt, and on justice and court services,” he said.
In another story, UK casinos have begun lobbying for a law change designed to better serve high rollers by allowing casinos to extend credit to wealthy players.
The Gambling Act 2005 prohibits UK casinos from lending customers money. According to a report at express.co.uk, casino leaders in the country feel a change would benefit the government—through increased taxes—as well as casinos.
“Worldwide, high-end customers get what we call a ‘marker.’ They are allowed to gamble on credit rather than having to transfer money from country to country and be subject to the vagaries of different exchange rates,” Simon Thomas, chief executive of London’s Hippodrome Casino told the website. “All we’re asking for is a simple change in the law to allow customers in British casinos to do the same.
“At the high-end we pay 50 percent of any money lost to the Government in tax on our gross profits, and corporation tax on top of that,” he said. “And research has shown that the more people win, the more they spend on nearby hotels, restaurants and shops, which is a considerable upside for the UK economy.”
